Goldman Sachs to announce new partners
Goldman Sachs will announce on Wednesday its list of new partners, which will be career-capstone news for the MDs who make it and a crushing blow for those who don't.
The cut is getting harder to make, as I've noted that the bank has been thinning the partner ranks. As of now, the bank has about 407 partners, down 31 from February numbers. Some might think that the bank was clearing the decks to make way for a large new class of partners. Others are sure that the bank simply wants to maintain fewer partners for expense control purposes. In any case, Wednesday will be a big day.
According to Financial News, the MDs who were passed over will be taken aside by their supervisors and quietly be informed. They can try again in two years. For those who do make the cut, the news will likely be delivered by none other than the CEO, Lloyd Blankfein. One story, when an MD was given the good news by phone, he told the CEO, "Don't tell my wife this but being named partner is the greatest day of my life."
The financial benefit of partnership has been significantly reduced. In 2011, partners took home between $3 and $6.5 million in salary. That's a far cry from the days back in 2007, before the financial crisis took hold. But optimists are betting that good times are just around the corner. Partners should enjoy them while they can, because for most partnerships don't last forever. They are expected to keep performing, which is hard. Most are culled at some point. But until then, they are at the pinnacle of success.
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